- Yesterday, Thomas Sullivan was named to oversee the Fed's regulation of non-bank systemically important financials, which at this point includes AIG and Prudential (PRU), and may eventually include MetLife (MET).
- Sullivan led the Connecticut Insurance Department from 2007-10, and before that spent more than two decades at Hartford Financial. His new position won't give him final say on decisions affecting the big insurers and their capital requirements, but he will have an important voice.
- "State regulation of insurance has protected insurance consumers and companies from the worst of the financial crisis," said Sullivan to Congress in 2009. "The business of insurance has not created the kinds of unrestrained and unregulated systemic risks that reform efforts seek to manage or prevent.”
- Said "reform efforts" eventually morphed into Dodd-Frank, and insurers (particularly MetLife) are lobbying to either prevent being named SIFIs or, if they are named as such, to prevent them being placed under the same capital regime as banks.
- Previously: Fed hires official to oversee AIG, Prudential